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SBA Disaster Loan Process to COVID-19

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Even as business owners are grappling with the day-to-day challenges presented by the corona virus outbreak, they are nevertheless already looking ahead to the processes that will help them resume commerce once the pandemic has receded.

As leaders prepare for recovery, one of the most important tools that will be available is the SBA Disaster Loan Program.

Having the facts can help business owners be prepared and ready when the danger has passed.

Here are some key details about the SBA Disaster Loans: 

  • New Jersey and New York have now been declared a designated disaster area.
  • New Jersey and New York businesses and nonprofit organizations are eligible to apply for the program.
  • The SBA Disaster Loan Program is open for all for-profit and nonprofit entities (there be some adjustments regarding the nonprofit community eligibility, but this has not yet been determined).
  • The applicants need to apply directly with the SBA at the following website:
  • The applicants need to register with their personal information.
  • It should be noted that this a credit approval process and each request is underwritten for approval.  The SBA will look for collateral to secure the disaster loan and will place a lien on the applicant’s primary residence if required.
  • The program allows fixed rate loans of 3.75% for businesses and 2.75% for nonprofit organizations, with terms up to 30 years.
  • The SBA Disaster Loan Program is separate from the SBA Guaranty Loan program.  Small businesses that have the maximum loan amount under the SBA 7(a) or SBA 504 loan programs are still eligible for a disaster loan.

The application process involves three steps.

Step One: Apply for Loan online at the secure website; in-person at a disaster center; or by mail.

Step Two: Property Verified and Loan Processing Decision Made

Step Three: Loan Closed and Funds Disbursed

During the process you will be asked to:

  • Complete, sign and submit Business Loan Application (SBA Form 5) IRS Form 4506-T
  • Provide complete copies, including all schedules, of the most recent Federal income tax returns for the applicant business; an explanation if not available.
  • Complete, sign and date a Personal Financial Statement (SBA Form 413) by the applicant (if a sole proprietorship), each principal owning 20% or more of the applicant business, each general partner or managing member.
  • Include a Schedule of Liabilities listing all fixed debts (SBA Form 2202 may be used).
  • There will be additional forms and information that will be necessary to process your application. For example, you will be asked for:
  • Complete copies, including all schedules, of the most recent Federal income tax returns for each principal owning 20% or more of the applicant business, each general partner or managing member, and each affiliate when any owner has more than a 50% ownership in the affiliate business. Affiliates include, but are not limited to, business parents, subsidiaries, and/or other businesses with common ownership or management. Note - If the most recent Federal income tax return has not been filed, a year-end profit and loss statement and balance sheet for that tax year is acceptable.
  • A current year-to-date profit and loss statement.
  • Additional Filing Requirements (SBA Form 1368) providing monthly sales figures.

This is not a complete list of all the necessary documentation.

We highly recommend you visit the site directly if you are considering applying for an SBA Disaster Loan.  At you will find all the details you need to proceed, including:

  1.  Disaster Preparedness and Recovery Fact Sheets
  2.  Types of Disaster Loans
  3.  Disaster Loan Application Paper Forms
  4.  Apply For a Disaster Loan
  5.  Three 3-Step Loan Process (download the PDF)